Working Paper: NBER ID: w30179
Authors: Natee Amornsiripanitch; Paul Gompers; George Hu; Will Levinson; Vladimir Mukharlyamov
Abstract: This paper proposes a non-pecuniary measure of career achievement, Seniority. Based on a database of over 5 million resumes, this metric exploits the variation in job titles and how long they take to attain. When non-monetary factors influence career choice, inference benefits from the use of non-wage measures, such as seniority. We apply it to study labor market outcomes of VC-backed entrepreneurs. Would-be founders experience accelerated career trajectories prior to founding, significantly outperforming graduates of same-tier colleges with similar first jobs. After exiting their start-ups, they obtain jobs about three years more senior than their right-before-founding peers. Even failed founders land jobs with higher seniority than those attained by their peers in the meantime.
Keywords: venture capital; entrepreneurship; career outcomes; nonwage measures; seniority
JEL Codes: J0; J3; J30; J31; J44; J6; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| VC-backed entrepreneurs (M13) | accelerated career trajectories (J62) |
| founding a firm (L26) | career outcomes (J62) |
| receipt of venture funding (G24) | positive signal in labor market (J49) |
| failed founders (M13) | higher job seniority than peers (M51) |
| founders (L26) | increase in job seniority (M51) |
| founders (L26) | increase in real wages (J39) |